Augustus, City Council agree to three-year contract

WORCESTER — City Manager Edward M. Augustus Jr. has a new contract that keeps him as the city's chief executive through October 2017.

After meeting in executive session for more than three hours, the City Council late Tuesday night unanimously approved a new three-year deal for Mr. Augustus.

The contract takes effect at 5 p.m. Friday, which is when his current nine-month contract expires. Mr. Augustus has been serving as city manager since Jan. 6 when he succeeded Michael V. O'Brien.

Under the terms of the contract, Mr. Augustus' annual salary of $193,314 will remain unchanged through June 30, 2015, which is the balance of this fiscal year.

On July 1, 2015, the start of the new fiscal year, he will receive a 2 percent pay raise, boosting his annual salary to $197,078.

Mr. Augustus will then receive similar 2 percent pay raises on July 1, 2016 ($201,020) and July 1, 2017 ($205,040).

The pay raises are consistent with previous city manager contracts and projected wage increases for municipal employees.

In addition to his regular salary, the contract also calls for the city on Oct. 15 to deposit $5,125 as regular pay toward a retirement-related fund or financial equity of Mr. Augustus' choice.

Then, beginning on Jan. 6, 2015 and payable on Jan. 6 of each year of the agreement the city is required to make a payment to Mr. Augustus that is "equal to the maximum contribution allowable under Internal Revenue Service regulations."

That money is also to be deposited as regular pay in a retirement related fun or financial equity of Mr. Augustus's choice.

The new deal also requires the City Council to notify Mr. Augustus on or before Jan. 1, 2017 whether it intends to negotiate a subsequent agreement with him or allow the contract to expire.

Other highlights of the contract call for:

▪Ten sick days on Oct. 3, Oct. 3, 2015 and Oct. 3, 2016 that shall accrue from year-to-year, and may be used during the term of the agreement.

▪Any unused sick days shall qualify for a partial buy-back at the end of each vacation/leave year and at the end of the contract. Any unused sick days shall have no cash value if the contract is terminated.

▪Ten vacation days for the period of Oct. 4 through May 31, 2015, and 20 vacation days per vacation/leave year (June 1-May 31) thereafter.

▪Any unused vacation days shall qualify for a partial buy-back at the end of each vacation/leave year.

▪Three personal days each year of the contract.

▪The city shall pay Mr. Augustus $3,000 annually toward the cost of his disability insurance, and another $3,000 toward the cost of his life insurance.

Those payments will be made on Oct. 15, Oct. 3, 2015 and Oct. 3, 2016.

▪Beginning Nov. 1 and thereafter on the first day of each calendar month the city shall reimburse Mr. Augustus $1,100 for the cost of his personal automobile, including the costs of operation, maintenance, repair and insurance.

Many of the contract provisions are in line with the manager's current contract.

Mr. Augustus, 49, agreed last month to accept an offer made by the City Council to initiate negotiations for a new long-term contract.

The City Council conducted a nationwide search to find a successor to Mr. Augustus, who had repeatedly indicated he planned to return to his old job as director of government and community relations at the College of the Holy Cross.

But when city councilors did not appear satisfied with any of the three finalists who emerged from the search, an appeal was made to Mr. Augustus to reconsider his previous decision and stay on as manager.

He accepted the offer and the council authorized Mayor Joseph M. Petty to initiate discussions with Mr. Augustus on a new long-term deal.

With Mr. Augustus' current contract set to expire Friday, the council had to hammer out a new deal Tuesday night.

The council met for an hour in executive session before the start of its regular meeting to discuss the city manager's new contract, then it continued those discussions for more than two hours behind closed doors after completing its regular business.

Mr. Augustus was represented in the contract talk by Robert J. Hennigan Jr., , a former city councilor who also represented the manager in his first contract negotiations.

Contact Nick Kotsopoulos at nicholas.kotsopoulos@telegram.com. Follow him on Twitter @NCKotsopoulos